The price of gold has fallen sharply! Bear season has begun,

Good evening, dear investors! 👋I am your old friend. The night market can be summed up in one sentence: disaster! 💔 I took a quick look at the charts and saw that spot gold prices are falling significantly, barely holding on around $4,620 an ounce. This is not just a retreat, this is a violent attack! 💥

💣News analysis: Two nuclear bombs exploded, gold has nowhere to escape!

Today’s market may have eliminated many long positions. Gold prices struggled a bit, hitting around $4,800, but what happened? He was immediately crushed to death by the bear! The closing price fell 3.73%, hitting a low of $4,807 per ounce, a new low in more than a month! 😱

Why such a sharp decline? Two disaster factors broke out at the same time!

Conflict in the Middle East, but gold prices fall? certainly! The attack on Iranian oil and gas fields immediately escalated tensions, sending Brent crude oil prices above $110. Although on the surface it looks like a safe haven, in fact it triggers a bigger panic than stagflation! High oil prices mean continued inflation, making it difficult for the Fed to lower interest rates. If they don’t lower interest rates, or even raise them, what chance does interest-free gold have? The logic immediately turns to pessimism! 💔

The Fed’s final blow, the hawks’ words are loud! Although the Fed did not change interest rates last night, its statement suggested that “inflation is stubborn, so don’t expect me to cut rates anytime soon!” This is what caused the U.S. dollar index to rise sharply, surpassing last year’s highest level! The strong US dollar causes gold prices to fall sharply! 🌍

Under the weight of these dual pressures, gold had no choice but to fall sharply!

📉Technical analysis: Sellers are about to enter; buyers should retreat immediately!

Let’s look at the charts and discuss the facts, without any emotional bias! ❄️

Daily Chart (Main Trend): As I mentioned before, the moving averages crossed downward last week! This is a clear sign of a trend reversal! Currently, the price is tightly bound by the moving averages, which is a classic bearish pattern! After yesterday’s sharp decline, the next target is likely to be the psychological level of 4700. If the price cannot close above the 5-day moving average (near 4940) today, any rebound will represent an opportunity to increase short positions! 💪

Hourly chart (short-term trading): There was a sharp decline last night, with volatility exceeding $200, releasing clear short-term bearish momentum. Therefore, there is a strong possibility of a price rebound during today’s Asian and European trading sessions. But this is definitely not the bottom! For those who missed the initial rush, this is your chance to get in again! 🚗

Pay close attention to the 4890-4900 area. If the price rebounds to this level, it will be a golden opportunity to short! If the rebound is stronger and reaches 4950 (the previous low support turns to resistance), then profits are guaranteed! But I personally think that in the current weak market situation, even a rebound to 4900 points will be difficult. The first level of support is focused on 4800; breaking through this level is only a matter of time. After that, the next target is the 4550-4500 long-term support area!

Trading tip: My current position is very clear: take advantage of the bear market and don’t buy! 🙅‍♂️
Basic idea: Sell when it goes up!

Daily strategy: Don’t rush into short selling; wait for the price to rebound! If the price reaches the 4690-4700 area, open a short position! Set a stop loss above 4750 with an initial target of 4600. If the price falls below this level, hold the position with a target of 4500!

Defensive strategy: If the bulls are very stubborn and the price falls directly below 4600 and the rebound is weak, you can enter the market on a small rebound, but keep the position size small considering the current low price.

💡Summary:

Gold is now falling like a sharp knife🔪. It looks cheap, but if you try to buy it, you will lose a lot! All we have to do is wait for the price to stabilize, otherwise there is a risk! The trend is obvious; don’t go against the market!

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